MAHALAKSHMI GLASS WORKS (P) LTD. vs COLLECTOR OF CENTRAL EXCISE, BOMBAY

The Supreme Court dismissed the appeal, affirming the Tribunal's conclusion that the cartons and gunny bags used for packing were not returnable under Section 4(4)(d)(i) of the Central Excises and Salt Act, 1944. The Court held that without an agreement for returnability, the seller is not obliged to accept the return of packing materials, and thus their cost should not be included in the assessable value. The judgment clarified that the term 'returnable' requires a mutual arrangement between buyer and seller, not merely the physical capability of the packing to be returned.